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MPC minutes: Unwinding high indirect taxes on fuel critical, says Das

Fall in inflation gives MPC room to continue to support growth in economy

rbi governor, shaktikanta das
premium

Since June last year, inflation was breaching the upper tolerance threshold of the committee but in December it cooled to 4.6 per cent because of a fall in food prices and favourable base effects

Subrata Panda Mumbai
With inflation under control, the Monetary Policy Committee’s (MPC’s) job is to support growth because the economy had recovered well from the lows in the initial months of the pandemic, according to the panel’s members, who met in the first week of this month.

The minutes of the meeting show the Reserve Bank of India (RBI) governor in his statement said: “Given the sharp moderation in inflation along with a stable near-term outlook, monetary policy needs to continue with the accommodative stance to ensure that the recovery gains greater traction and becomes broad-based.” Ashima Goyal, external member of the MPC, said: